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But investors who
want to get their money out of
the bonds need to be careful.
Some bonds still charge exit
penalties which could snatch
away up to 21pc of your
investment.

With-profits bond performance is generally not good

But some bonds let you cash
in penalty-free on the tenth
anniversary of when you
bought the bond.

Your insurer is unlikely to
alert you if you have this
valuable get-out clause – it’s up to
you to find out.

Danny Cox, of advisers
Hargreaves Lansdown, advises:
‘Those who can cash in their
bond without paying a penalty
or tax charge should seriously
consider doing so.

‘The recent round of
with-profits bonus announcements
shows that even when stock
markets have done well,
with-profits still does badly.

‘If you have a with-profits
bond, dig out your paperwork
and check when you took it out
and if you can access this
valuable escape route.’

How much time you have to
get out depends on the
company: Scottish Widows needs to
know within 28 days before the
anniversary, whereas Aviva will
allow you to request a get-out
28 days before or after the
bond’s tenth birthday.

When you’ve found the date
and how long you have to
claim, you need to write,
including your original policy
document and a letter saying
that you want to exercise your
option to surrender your
with-profits bond penalty free on
the tenth anniversary of
whatever date that would be.

If you’ve lost your policy
documents, get a lost policy
declaration form from your insurer.